Pictured: Greta Thunberg arrested at oil tanker protest in Sweden
George Styllis
Mon, June 19, 2023
Police officers carry Swedish climate activist Greta Thunberg away
Gretha Thunberg was dragged away by police and arrested after blocking oil tankers in Malmo harbour, Sweden, for five days.
Ms Thunberg was with members of Ta tillbaka framtiden, or Take Back the Future, when she was led away by officers on Monday.
The campaigner has been arrested several times before for her activism including in Germany, and in Oslo where she was protesting over an onshore wind farm.
Police officers talk to Ms Thunberg - Johan Nilsson
Police officers lead off the Swedish climate activist - Johan Nilsson
Tweeting on Saturday, she said: “The climate crisis is a matter of life and death for countless people. We choose to physically stop fossil fuel infrastructure. We are reclaiming the future.”
It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Wednesday, June 21, 2023
Founder of US 'orgasmic meditation' group to challenge forced labor charge
Wed, June 21, 2023
By Luc Cohen
NEW YORK, June 21 (Reuters) - The founder of OneTaste, a sexual wellness company that claims to teach "orgasmic meditation," plans to challenge a federal criminal charge that she surveilled group members and withheld promised wages, her lawyer said on Wednesday.
Reid Weingarten, a lawyer for Nicole Daedone, told U.S. District Judge Diane Gujarati in a hearing in Brooklyn federal court that the indictment made public earlier this month lacked details and that he would move to dismiss it.
"Who are they saying were the victims?" Weingarten said. "Who are the slaves that we enslaved?"
Daedone, who also served as OneTaste's chief executive until 2017, and former head of sales Rachel Cherwitz have each pleaded not guilty to one count of forced labor conspiracy.
Federal prosecutors in Brooklyn say they induced volunteers, contractors and employees to incur debt to take courses that they claimed could heal sexual trauma and dysfunction, and instructed them to engage in sex acts for "freedom and enlightenment."
Jenny Kramer, a lawyer for Cherwitz, told Gujarati her client denied the charges.
Founded in 2004, California-based OneTaste was the subject last year of the Netflix documentary "Orgasm Inc," which followed its rise and includes interviews with former members.
The company has said it has cooperated with prosecutors but called the charges the culmination of a "misogynistic" campaign to "tear down a feminine empowerment project."
Wed, June 21, 2023
By Luc Cohen
NEW YORK, June 21 (Reuters) - The founder of OneTaste, a sexual wellness company that claims to teach "orgasmic meditation," plans to challenge a federal criminal charge that she surveilled group members and withheld promised wages, her lawyer said on Wednesday.
Reid Weingarten, a lawyer for Nicole Daedone, told U.S. District Judge Diane Gujarati in a hearing in Brooklyn federal court that the indictment made public earlier this month lacked details and that he would move to dismiss it.
"Who are they saying were the victims?" Weingarten said. "Who are the slaves that we enslaved?"
Daedone, who also served as OneTaste's chief executive until 2017, and former head of sales Rachel Cherwitz have each pleaded not guilty to one count of forced labor conspiracy.
Federal prosecutors in Brooklyn say they induced volunteers, contractors and employees to incur debt to take courses that they claimed could heal sexual trauma and dysfunction, and instructed them to engage in sex acts for "freedom and enlightenment."
Jenny Kramer, a lawyer for Cherwitz, told Gujarati her client denied the charges.
Founded in 2004, California-based OneTaste was the subject last year of the Netflix documentary "Orgasm Inc," which followed its rise and includes interviews with former members.
The company has said it has cooperated with prosecutors but called the charges the culmination of a "misogynistic" campaign to "tear down a feminine empowerment project."
(Reporting by Luc Cohen in New York Editing by Matthew Lewis)
KETTLE CALLING POT BLACK
Google accuses Microsoft of anticompetitive cloud practices - The Information
Reuters
Wed, June 21, 2023
VivaTech conference dedicated to innovation and startups in Paris
(Reuters) - Alphabet's Google formally filed a complaint to the U.S. Federal Trade Commission on Tuesday saying Microsoft used its dominant position in enterprise software to push customers towards its cloud services, The Information reported on Wednesday.
Microsoft used the licensing terms in its Office 365 productivity software to lock customers into separate contracts with its Azure cloud server business, Google's complaint said, according to the report.
There is intense rivalry between the two U.S. tech giants in the fast-growing, multi-billion-dollar cloud computing business, where Google trails market leaders Amazon.com and Microsoft.
The sector has recently drawn greater regulatory scrutiny, including in the United States and in Britain, because of the dominance of a few players and its increasingly critical role as more and more companies shift their services to the cloud.
In March, Google Cloud had accused Microsoft of anti-competitive cloud computing practices and criticized imminent deals with several European cloud vendors, saying these do not solve broader concerns about its licensing terms.
Earlier this year, the FTC had said it is seeking information from the public on the business practices of cloud computing companies, including details on their market power, competition and potential security issues.
Google and Microsoft did not immediately respond to Reuters' requests for comment, while the FTC declined to comment.
(Reporting by Urvi Dugar and Samrhitha Arunasalam in Bengaluru; Additional Reporting by Jaspreet Singh in Bengaluru; Editing by Krishna Chandra Eluri)
Google accuses Microsoft of anticompetitive cloud practices - The Information
Reuters
Wed, June 21, 2023
VivaTech conference dedicated to innovation and startups in Paris
(Reuters) - Alphabet's Google formally filed a complaint to the U.S. Federal Trade Commission on Tuesday saying Microsoft used its dominant position in enterprise software to push customers towards its cloud services, The Information reported on Wednesday.
Microsoft used the licensing terms in its Office 365 productivity software to lock customers into separate contracts with its Azure cloud server business, Google's complaint said, according to the report.
There is intense rivalry between the two U.S. tech giants in the fast-growing, multi-billion-dollar cloud computing business, where Google trails market leaders Amazon.com and Microsoft.
The sector has recently drawn greater regulatory scrutiny, including in the United States and in Britain, because of the dominance of a few players and its increasingly critical role as more and more companies shift their services to the cloud.
In March, Google Cloud had accused Microsoft of anti-competitive cloud computing practices and criticized imminent deals with several European cloud vendors, saying these do not solve broader concerns about its licensing terms.
Earlier this year, the FTC had said it is seeking information from the public on the business practices of cloud computing companies, including details on their market power, competition and potential security issues.
Google and Microsoft did not immediately respond to Reuters' requests for comment, while the FTC declined to comment.
(Reporting by Urvi Dugar and Samrhitha Arunasalam in Bengaluru; Additional Reporting by Jaspreet Singh in Bengaluru; Editing by Krishna Chandra Eluri)
CRIMINAL CAPITALI$M
Amazon duped millions of consumers into enrolling in Prime, US FTC says
Wed, June 21, 2023
By David Shepardson
WASHINGTON (Reuters) -The U.S. Federal Trade Commission on Wednesday accused Amazon.com of enrolling millions of consumers into its paid subscription Amazon Prime service without their consent and making it hard for them to cancel, the latest action by the agency against the ecommerce giant in recent weeks.
The FTC sued in Amazon in federal court in Seattle, alleging that "Amazon has knowingly duped millions of consumers into unknowingly enrolling in Amazon Prime." The FTC said Amazon used "manipulative, coercive or deceptive user-interface designs known as 'dark patterns' to trick consumers into enrolling in automatically renewing Prime subscriptions."
The lawsuit is one of several actions taken by President Joe Biden's administration intended to rein in the outsized market power of Big Tech firms as it tries to increase competition to create greater consumer protection.
The FTC said Amazon Prime is the world's largest subscription program, generating $25 billion in revenue annually. It offers fast, free shipping on millions of items, various discounts and access to movies, music and television series, as well as other benefits. Prime members in the United States pay $139 per year and drive much of Amazon's sales volume. Prime has more than 200 million members worldwide.
The FTC said that "one of Amazon's primary business goals - and the primary business goal of Prime - is increasing subscriber numbers."
The lawsuit said that under substantial pressure from the FTC, Amazon changed its cancellation process in April but that "violations are ongoing" and that it still "requires five clicks on desktop and six on mobile for consumers to cancel from Amazon.com."
The agency is seeking civil penalties and a permanent injunction to prevent future violations.
Amazon's shares were down 0.9% in midday trading.
The company did not immediately respond to a request for comment.
The FTC has been investigating sign-up and cancellation processes for the Prime program since March 2021.
"Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money," FTC Chair Lina Khan said in a statement.
Consumers who attempted to cancel Prime were faced with multiple labyrinthine steps to accomplish the task of cancelling, according to the complaint. The FTC complaint said Amazon used the term "Iliad Flow" to describe the process it began in 2016, referencing Homer's epic poem about the lengthy Trojan war.
Amazon also committed "intentional misconduct" meant to delay the FTC's investigation by providing "bad faith" responses to requests for documents, the agency said.
The FTC on May 31 announced a $5.8 million settlement with Amazon's Ring doorbell camera unit after the agency said cameras had been used for spying on some customers. On the same day, the FTC said Amazon agreed to pay $25 million to settle allegations that it violated children's privacy rights by failing to delete Alexa virtual assistant technology recordings at the request of parents and keeping them longer than necessary.
(Reporting by David Shepardson; Editing by Will Dunham and Doina Chiacu)
Amazon duped millions of consumers into enrolling in Prime, US FTC says
Wed, June 21, 2023
By David Shepardson
WASHINGTON (Reuters) -The U.S. Federal Trade Commission on Wednesday accused Amazon.com of enrolling millions of consumers into its paid subscription Amazon Prime service without their consent and making it hard for them to cancel, the latest action by the agency against the ecommerce giant in recent weeks.
The FTC sued in Amazon in federal court in Seattle, alleging that "Amazon has knowingly duped millions of consumers into unknowingly enrolling in Amazon Prime." The FTC said Amazon used "manipulative, coercive or deceptive user-interface designs known as 'dark patterns' to trick consumers into enrolling in automatically renewing Prime subscriptions."
The lawsuit is one of several actions taken by President Joe Biden's administration intended to rein in the outsized market power of Big Tech firms as it tries to increase competition to create greater consumer protection.
The FTC said Amazon Prime is the world's largest subscription program, generating $25 billion in revenue annually. It offers fast, free shipping on millions of items, various discounts and access to movies, music and television series, as well as other benefits. Prime members in the United States pay $139 per year and drive much of Amazon's sales volume. Prime has more than 200 million members worldwide.
The FTC said that "one of Amazon's primary business goals - and the primary business goal of Prime - is increasing subscriber numbers."
The lawsuit said that under substantial pressure from the FTC, Amazon changed its cancellation process in April but that "violations are ongoing" and that it still "requires five clicks on desktop and six on mobile for consumers to cancel from Amazon.com."
The agency is seeking civil penalties and a permanent injunction to prevent future violations.
Amazon's shares were down 0.9% in midday trading.
The company did not immediately respond to a request for comment.
The FTC has been investigating sign-up and cancellation processes for the Prime program since March 2021.
"Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money," FTC Chair Lina Khan said in a statement.
Consumers who attempted to cancel Prime were faced with multiple labyrinthine steps to accomplish the task of cancelling, according to the complaint. The FTC complaint said Amazon used the term "Iliad Flow" to describe the process it began in 2016, referencing Homer's epic poem about the lengthy Trojan war.
Amazon also committed "intentional misconduct" meant to delay the FTC's investigation by providing "bad faith" responses to requests for documents, the agency said.
The FTC on May 31 announced a $5.8 million settlement with Amazon's Ring doorbell camera unit after the agency said cameras had been used for spying on some customers. On the same day, the FTC said Amazon agreed to pay $25 million to settle allegations that it violated children's privacy rights by failing to delete Alexa virtual assistant technology recordings at the request of parents and keeping them longer than necessary.
(Reporting by David Shepardson; Editing by Will Dunham and Doina Chiacu)
U$ Senate moves closer to a ‘claw back’ of executive pay after bank failures
Ben Werschkul
·Washington Correspondent
Wed, June 21, 2023
A bipartisan effort to ‘claw back’ compensation from bank executives who oversee a failure advanced in the Senate Wednesday, one of the most significant legislative moves to rein in the industry since the collapse of Silicon Valley Bank.
The bill advanced out of the Senate Committee on Banking, Housing, and Urban Affairs in a vote of 21 to 2. It came after late-night negotiations with a host of senators haggling up until the last minute on how much power to give regulators when confronting future banking failures.
We "threaded the needle pretty well," said Senate Banking Committee Chair Sherrod Brown (D-OH) of the final package. He says, if enacted, the bill would give officials new power to step in if another situation arises where "executives failed at the basics of bank management."
The bill grants the Federal Deposit Insurance Corporation (FDIC) new powers to force the return of executive compensation in return for a government takeover to protect the depositors at troubled banks. The bill puts the previous two years of compensation among senior bank executives on the table with a focus on perks like bonuses and stock option profits.
The bill would also allow new fines as well as the banning of executives from the banking industry if misconduct is proven.
Senate Banking Committee Chairman Sen. Sherrod Brown (D-OH) and Ranking Member Sen. Tim Scott (R-SC) confer during a recent hearing. (Michael A. McCoy/ Getty Images)
Sen. Tim Scott (R-SC), the committee's ranking member, was closely involved in the negotiations and signaled that the "tailored" nature of the final bill would likely mean continued broad bipartisan support in the weeks ahead. He called it a "commonsense solution" that would not leave taxpayers paying for mismanagement in the banking sector.
The bill was also passed with a last-minute package of amendments that, among other things, introduced new requirements on banking regulators who oversee the industry.
Sen. Kyrsten Sinema (I-AZ) co-authored one of the adopted amendments. She said the additional requirements on regulators would “hold the Federal Reserve accountable for the cultural and operations changes that are needed.”
Two GOP senators voted no Wednesday, with Sen. Thom Tillis (R-NC) saying there is still "a lot of work to be done" on the issue. He said he was opposed because he worries the current measure remains overly expansive and would stifle innovation by not discriminating between innovative ideas at banks and management malpractice.
Nevertheless, the bill now goes to the full Senate where its broad bipartisan support in committee could mean it will likely to be considered soon by all 100 lawmakers.
Two main approaches to the issue
Wednesday’s debate hinged around two different proposals.
The hearing was called to consider a bill called the Recovering Executive Compensation from Unaccountable Practices (RECOUP) Act, which was authored by Sens. Brown and Scott and formed the basis for the final bill.
But also up for debate was a more far-reaching proposal from figures like from Sens. J.D. Vance (R-OH) and Elizabeth Warren (D-MA). That bill has many similar provisions but would go further in some areas.
Their bill would bring a wider range of senior officials at banks under scrutiny - from executives to directors to controlling shareholders - and also put the three years of compensation on the table.
Sen. Elizabeth Warren (D-MA) during a Senate Banking, Housing, and Urban Affairs hearing in May. (AP Photo/Jacquelyn Martin)
Sen. Warren said Wednesday her position remains that the bill needs to go further to cover "every bad actor" but she nevertheless she called Wednesday’s product a reasonable compromise and voted yes.
Ben Werschkul is Washington correspondent for Yahoo Finance.
Ben Werschkul
·Washington Correspondent
Wed, June 21, 2023
A bipartisan effort to ‘claw back’ compensation from bank executives who oversee a failure advanced in the Senate Wednesday, one of the most significant legislative moves to rein in the industry since the collapse of Silicon Valley Bank.
The bill advanced out of the Senate Committee on Banking, Housing, and Urban Affairs in a vote of 21 to 2. It came after late-night negotiations with a host of senators haggling up until the last minute on how much power to give regulators when confronting future banking failures.
We "threaded the needle pretty well," said Senate Banking Committee Chair Sherrod Brown (D-OH) of the final package. He says, if enacted, the bill would give officials new power to step in if another situation arises where "executives failed at the basics of bank management."
The bill grants the Federal Deposit Insurance Corporation (FDIC) new powers to force the return of executive compensation in return for a government takeover to protect the depositors at troubled banks. The bill puts the previous two years of compensation among senior bank executives on the table with a focus on perks like bonuses and stock option profits.
The bill would also allow new fines as well as the banning of executives from the banking industry if misconduct is proven.
Senate Banking Committee Chairman Sen. Sherrod Brown (D-OH) and Ranking Member Sen. Tim Scott (R-SC) confer during a recent hearing. (Michael A. McCoy/ Getty Images)
Sen. Tim Scott (R-SC), the committee's ranking member, was closely involved in the negotiations and signaled that the "tailored" nature of the final bill would likely mean continued broad bipartisan support in the weeks ahead. He called it a "commonsense solution" that would not leave taxpayers paying for mismanagement in the banking sector.
The bill was also passed with a last-minute package of amendments that, among other things, introduced new requirements on banking regulators who oversee the industry.
Sen. Kyrsten Sinema (I-AZ) co-authored one of the adopted amendments. She said the additional requirements on regulators would “hold the Federal Reserve accountable for the cultural and operations changes that are needed.”
Two GOP senators voted no Wednesday, with Sen. Thom Tillis (R-NC) saying there is still "a lot of work to be done" on the issue. He said he was opposed because he worries the current measure remains overly expansive and would stifle innovation by not discriminating between innovative ideas at banks and management malpractice.
Nevertheless, the bill now goes to the full Senate where its broad bipartisan support in committee could mean it will likely to be considered soon by all 100 lawmakers.
Two main approaches to the issue
Wednesday’s debate hinged around two different proposals.
The hearing was called to consider a bill called the Recovering Executive Compensation from Unaccountable Practices (RECOUP) Act, which was authored by Sens. Brown and Scott and formed the basis for the final bill.
But also up for debate was a more far-reaching proposal from figures like from Sens. J.D. Vance (R-OH) and Elizabeth Warren (D-MA). That bill has many similar provisions but would go further in some areas.
Their bill would bring a wider range of senior officials at banks under scrutiny - from executives to directors to controlling shareholders - and also put the three years of compensation on the table.
Sen. Elizabeth Warren (D-MA) during a Senate Banking, Housing, and Urban Affairs hearing in May. (AP Photo/Jacquelyn Martin)
Sen. Warren said Wednesday her position remains that the bill needs to go further to cover "every bad actor" but she nevertheless she called Wednesday’s product a reasonable compromise and voted yes.
Ben Werschkul is Washington correspondent for Yahoo Finance.
A whistleblower raised safety concerns about OceanGate’s submersible in 2018. Then he was fired.
Mark Harris
Everything you needed to know about OceanGate's Titan submersible was discussed in a 2022 CBS news pieceMark Harris
TECHCRUNCH
Tue, June 20, 2023 a
Image Credits: Oceangate
The director of marine operations at OceanGate, the company whose submersible went missing Sunday on an expedition to the Titanic in the North Atlantic, was fired after raising concerns about its first-of-a-kind carbon fiber hull and other systems before its maiden voyage, according to a filing in a 2018 lawsuit first reported by Insider and New Republic.
David Lochridge was terminated in January 2018 after presenting a scathing quality control report on the vessel to OceanGate’s senior management, including founder and CEO Stockton Rush, who is on board the missing vessel.
According to a court filing by Lochridge, the preamble to his report read: “Now is the time to properly address items that may pose a safety risk to personnel. Verbal communication of the key items I have addressed in my attached document have been dismissed on several occasions, so I feel now I must make this report so there is an official record in place.”
The report detailed “numerous issues that posed serious safety concerns,” according to the filing. These included Lochridge’s worry that “visible flaws” in the carbon fiber supplied to OceanGate raised the risk of small flaws expanding into larger tears during “pressure cycling.” These are the huge pressure changes that the submersible would experience as it made its way and from the deep ocean floor. He noted that a previously tested scale model of the hull had “prevalent flaws.”
Carbon fiber composites can be stronger and lighter than steel, making a submersible naturally buoyant. But they can also be prone to sudden failure under stress. The hull that Lochridge was writing about was made by Spencer Composites, the only company to have previously made a carbon fiber hull for a manned submersible. (That submersible was commissioned by explorer Steve Fossett for a record-breaking dive, but he died in a light aircraft crash before it could be used.)
Lochridge’s recommendation was that non-destructive testing of the Titan’s hull was necessary to ensure a “solid and safe product.” The filing states that Lochridge was told that such testing was impossible, and that OceanGate would instead rely on its much touted acoustic monitoring system.
The company claims this technology, developed in-house, uses acoustic sensors to listen for the tell-tale sounds of carbon fibers in the hull deteriorating to provide “early warning detection for the pilot with enough time to arrest the descent and safely return to surface.”
Lochridge, however, worried in the lawsuit that the system would not reveal flaws until the vessel was descending, and then might only provide “milliseconds” of warning before a catastrophic implosion.
OceanGate plans an expedition to 3D scan the Titanic
Russell McDuff, a veteran oceanographer and chairman of OceanGate’s scientific and research foundation for three years, noted that contact with the Titan was lost on Sunday after only an hour and 45 minutes. “This suggests to me that they might have still been in the water column, descending to the Titanic,” told TechCrunch in a phone interview.
Lochridge also strongly encouraged OceanGate to have a classification agency, such as the American Bureau of Shipping, inspect and certify the Titan.
A day after filing his report, Lochridge was summoned to a meeting with Rush and company’s human resources, engineering and operations directors. There, the filing states, he was also informed that the manufacturer of the Titan’s forward viewport would only certify it to a depth of 1,300 meters due to OceanGate’s experimental design. The filing states that OceanGate refused to pay for the manufacturer to build a viewport that would meet the Titan’s intended depth of 4,000 meters. The Titanic lies about 3,800 meters below the surface.
The filing also claims that hazardous flammable materials were being used within the submersible.
At the end of the meeting, after saying that he would not authorize any manned tests of Titan without a scan of the hull, Lochridge was fired and escorted from the building.
Lochridge, who claimed he was discharged in retaliation for being a whistleblower, made his filing after OceanGate sued him in federal court in Seattle that June. OceanGate has accused him of sharing confidential information with two individuals, as well as with the Occupational Safety and Health Administration (OSHA). In the lawsuit, OceanGate characterized Lochridge’s report as false, and accused him of committing fraud by manufacturing a reason to be fired.
The lawsuit was settled in November 2018. Neither OceanGate nor Lochridge responded to requests for comment. OSHA could not immediately provide details of the alleged report. A routine OSHA inspection of OceanGate in 2021 found only three minor workplace safety violations resulting in no financial penalties.
A few months after Lochridge’s dismissal, the company published a blog post that laid out its reasons for not having Titan certified by the American Bureau of Shipping or a similar organization.
“The vast majority of marine (and aviation) accidents are a result of operator error, not mechanical failure,” it reads. “As a result, simply focusing on classing the vessel does not address the operational risks. Maintaining high-level operational safety requires constant, committed effort and a focused corporate culture – two things that OceanGate takes very seriously and that are not assessed during classification.”
In 2019, Rush gave an interview to Smithsonian magazine, in which he said: “There hasn’t been an injury in the commercial sub industry in over 35 years. It’s obscenely safe, because they have all these regulations. But it also hasn’t innovated or grown—because they have all these regulations.”
Following Lochridge’s departure, the Titan was tested safely on increasingly deep dives, including to 4,000 meters in the Bahamas. However, it seems one of Lochridge’s concerns would soon be borne out. In January 2020, Rush gave an interview to GeekWire in which he admitted that the Titan’s hull “showed signs of cyclic fatigue.” Because of this, the hull’s depth rating had been reduced to 3,000 meters. “Not enough to get to the Titanic,” Rush said.
During 2020 and 2021, the Titan’s hull was either repaired or rebuilt by two Washington state companies, Electroimpact and Janicki Industries, that largely work in aerospace. In late 2021, the Titan made its first trip down to the wreck of the Titanic.
Spencer Composites says that the Titan was not using its carbon fiber hull on Sunday’s dive. Presumably apart from the hull work, one source familiar with the company told TechCrunch that not much with Titan had changed at all since 2018.
At the time of publication, the Titan remains missing, with Rush, French diver Paul-Henri Nargeolet, British billionaire Hamish Harding, Pakistani businessman Shahzada Dawood and his son reportedly on board. A massive search and rescue operation is underway.
“They're doing everything that they logically can,” McDuff said. "But I’m a little pessimistic because of the amount of time that's gone by.”
Tue, June 20, 2023 a
Image Credits: Oceangate
The director of marine operations at OceanGate, the company whose submersible went missing Sunday on an expedition to the Titanic in the North Atlantic, was fired after raising concerns about its first-of-a-kind carbon fiber hull and other systems before its maiden voyage, according to a filing in a 2018 lawsuit first reported by Insider and New Republic.
David Lochridge was terminated in January 2018 after presenting a scathing quality control report on the vessel to OceanGate’s senior management, including founder and CEO Stockton Rush, who is on board the missing vessel.
According to a court filing by Lochridge, the preamble to his report read: “Now is the time to properly address items that may pose a safety risk to personnel. Verbal communication of the key items I have addressed in my attached document have been dismissed on several occasions, so I feel now I must make this report so there is an official record in place.”
The report detailed “numerous issues that posed serious safety concerns,” according to the filing. These included Lochridge’s worry that “visible flaws” in the carbon fiber supplied to OceanGate raised the risk of small flaws expanding into larger tears during “pressure cycling.” These are the huge pressure changes that the submersible would experience as it made its way and from the deep ocean floor. He noted that a previously tested scale model of the hull had “prevalent flaws.”
Carbon fiber composites can be stronger and lighter than steel, making a submersible naturally buoyant. But they can also be prone to sudden failure under stress. The hull that Lochridge was writing about was made by Spencer Composites, the only company to have previously made a carbon fiber hull for a manned submersible. (That submersible was commissioned by explorer Steve Fossett for a record-breaking dive, but he died in a light aircraft crash before it could be used.)
Lochridge’s recommendation was that non-destructive testing of the Titan’s hull was necessary to ensure a “solid and safe product.” The filing states that Lochridge was told that such testing was impossible, and that OceanGate would instead rely on its much touted acoustic monitoring system.
The company claims this technology, developed in-house, uses acoustic sensors to listen for the tell-tale sounds of carbon fibers in the hull deteriorating to provide “early warning detection for the pilot with enough time to arrest the descent and safely return to surface.”
Lochridge, however, worried in the lawsuit that the system would not reveal flaws until the vessel was descending, and then might only provide “milliseconds” of warning before a catastrophic implosion.
OceanGate plans an expedition to 3D scan the Titanic
Russell McDuff, a veteran oceanographer and chairman of OceanGate’s scientific and research foundation for three years, noted that contact with the Titan was lost on Sunday after only an hour and 45 minutes. “This suggests to me that they might have still been in the water column, descending to the Titanic,” told TechCrunch in a phone interview.
Lochridge also strongly encouraged OceanGate to have a classification agency, such as the American Bureau of Shipping, inspect and certify the Titan.
A day after filing his report, Lochridge was summoned to a meeting with Rush and company’s human resources, engineering and operations directors. There, the filing states, he was also informed that the manufacturer of the Titan’s forward viewport would only certify it to a depth of 1,300 meters due to OceanGate’s experimental design. The filing states that OceanGate refused to pay for the manufacturer to build a viewport that would meet the Titan’s intended depth of 4,000 meters. The Titanic lies about 3,800 meters below the surface.
The filing also claims that hazardous flammable materials were being used within the submersible.
At the end of the meeting, after saying that he would not authorize any manned tests of Titan without a scan of the hull, Lochridge was fired and escorted from the building.
Lochridge, who claimed he was discharged in retaliation for being a whistleblower, made his filing after OceanGate sued him in federal court in Seattle that June. OceanGate has accused him of sharing confidential information with two individuals, as well as with the Occupational Safety and Health Administration (OSHA). In the lawsuit, OceanGate characterized Lochridge’s report as false, and accused him of committing fraud by manufacturing a reason to be fired.
The lawsuit was settled in November 2018. Neither OceanGate nor Lochridge responded to requests for comment. OSHA could not immediately provide details of the alleged report. A routine OSHA inspection of OceanGate in 2021 found only three minor workplace safety violations resulting in no financial penalties.
A few months after Lochridge’s dismissal, the company published a blog post that laid out its reasons for not having Titan certified by the American Bureau of Shipping or a similar organization.
“The vast majority of marine (and aviation) accidents are a result of operator error, not mechanical failure,” it reads. “As a result, simply focusing on classing the vessel does not address the operational risks. Maintaining high-level operational safety requires constant, committed effort and a focused corporate culture – two things that OceanGate takes very seriously and that are not assessed during classification.”
In 2019, Rush gave an interview to Smithsonian magazine, in which he said: “There hasn’t been an injury in the commercial sub industry in over 35 years. It’s obscenely safe, because they have all these regulations. But it also hasn’t innovated or grown—because they have all these regulations.”
Following Lochridge’s departure, the Titan was tested safely on increasingly deep dives, including to 4,000 meters in the Bahamas. However, it seems one of Lochridge’s concerns would soon be borne out. In January 2020, Rush gave an interview to GeekWire in which he admitted that the Titan’s hull “showed signs of cyclic fatigue.” Because of this, the hull’s depth rating had been reduced to 3,000 meters. “Not enough to get to the Titanic,” Rush said.
During 2020 and 2021, the Titan’s hull was either repaired or rebuilt by two Washington state companies, Electroimpact and Janicki Industries, that largely work in aerospace. In late 2021, the Titan made its first trip down to the wreck of the Titanic.
Spencer Composites says that the Titan was not using its carbon fiber hull on Sunday’s dive. Presumably apart from the hull work, one source familiar with the company told TechCrunch that not much with Titan had changed at all since 2018.
At the time of publication, the Titan remains missing, with Rush, French diver Paul-Henri Nargeolet, British billionaire Hamish Harding, Pakistani businessman Shahzada Dawood and his son reportedly on board. A massive search and rescue operation is underway.
“They're doing everything that they logically can,” McDuff said. "But I’m a little pessimistic because of the amount of time that's gone by.”
Ananya Bhattacharya
QUARTZ
Tue, June 20, 2023
All in the name of the Titanic
The US Coast Guard is currently leading an operation to rescue the five people aboard a submersible that has went missing on June 18 during a trip to explore the ruins of the Titanic.
The company behind the expedition, OceanGate, made its first trip to the Titanic wreck in 2021 and then again in 2022. The company went back this summer as part of plans to “continue to return annually to further document the Titanic and its rate of decay,” its website says.
The brainchild of CEO Stockton Rush, the Titan submersible—a watercraft that, unlike a submarine which is autonomous, needs a mother ship to launch it—is made of five-inch-thick carbon fiber, capped on each end by a dome of titanium, one of which has a clear window. It is launched from and it returns to its support vessel—the Polar Prince, in this case.
CBS journalist David Pogue highlighted some of the Titan’s oddities as part of a news story he did in 2022 when he joined an expedition to the Titanic wreck. These included elements that seemed “improvised from off-the-shelf parts,” and the game controller that operated the craft.
Tue, June 20, 2023
All in the name of the Titanic
The US Coast Guard is currently leading an operation to rescue the five people aboard a submersible that has went missing on June 18 during a trip to explore the ruins of the Titanic.
The company behind the expedition, OceanGate, made its first trip to the Titanic wreck in 2021 and then again in 2022. The company went back this summer as part of plans to “continue to return annually to further document the Titanic and its rate of decay,” its website says.
The brainchild of CEO Stockton Rush, the Titan submersible—a watercraft that, unlike a submarine which is autonomous, needs a mother ship to launch it—is made of five-inch-thick carbon fiber, capped on each end by a dome of titanium, one of which has a clear window. It is launched from and it returns to its support vessel—the Polar Prince, in this case.
CBS journalist David Pogue highlighted some of the Titan’s oddities as part of a news story he did in 2022 when he joined an expedition to the Titanic wreck. These included elements that seemed “improvised from off-the-shelf parts,” and the game controller that operated the craft.
CBS reporter David Pogue questioned the Titan submersible in 2022
Communications breakdown
There’s no GPS underwater, so the surface ship is supposed to guide the sub to the shipwreck by sending text messages. During the 2022 dive CBS reported in, communications broke down and the sub lost contact for 2.5 hours—and it never found the Titanic wreck, Pogue said.
And Pogue isn’t the only one with such a story. Mike Reiss, a TV comedy writer who worked on The Simpsons and took the trip last year, said communication was lost on all three dives he was part of last year, including one to the Titanic.
Regulatory red flag
To join the expedition, Pogue had to sign a document stating the following: “This experimental vessel has not been approved or certified by any regulatory body, and could result in physical injury, emotional trauma, or death.”
OceanGate’s website claims expeditions will be conducted respectfully and in accordance with National Oceanic and Atmospheric Administration (NOAA) Guidelines for Research Exploration and Salvage of RMS Titanic, and comply with UNESCO guidelines for the preservation of underwater world heritage sites. But nowhere does it share evidence of vetting and obtaining regulatory approval on the vessel itself.
No escape plan
There are at least seven different functions that allow the sub to resurface, so it was “really concerning” that it hadn’t yet, Pogue told the BBC. If the sub became trapped or there was a leak—both possibilities—“there’s no backup, there’s no escape pod.”
Quotable: CEO Stockton Rush touts Titan’s safety
“The pressure vessel is not MacGyver at all, because that’s where we worked with Boeing and NASA and the University of Washington. Everything else can fail, your thrusters can go, your lights can go. You’re still going to be safe.”—CEO Stockton Rush to CBS last November
The missing Titan submersible, by the digits
5: People the truck-sized sub can accommodate, comprising 1 pilot and 4 crew. A Pakistani businessman and his son are aboard the submersible. So is Hamish Harding, a British billionaire and explorer. The other two passengers are believed to be Paul Henry Nargeolet, a former French navy commander, deep diver, and a submersible pilot, and OceanGate chief Stockton Rush
$250,000: Cost of a seat on the submersible
8 days: How long the complete journey lasts
4,000 meters (13,123 feet): Maximum depth the submersible reaches to view the Titanic, which sits at 3,800 feet
2,000 feet: The maximum depth of the underwater vehicle the US Navy uses for rescuing people from submarines
900 miles: How far the area of focus for the rescue operation is from the US east coast (430 miles away from Newfoundland in Canada)
20,000 feet: The depth CURV-21, which the Navy uses to salvage objects from the sea floor, can reach but it only has a lift capacity of...
...4,000 pounds: That’s way less than the 20,000 pound Titan submersible
70 and 96 hours: How long the oxygen supply on the vessel is thought to be able to last
50: Test dives the Titan had undergone, including to the equivalent depth of the Titanic, in deep waters off the Bahamas, as per OceanGate
1 hour and 45 minutes: How far into its dive Sunday (May 18) the submersible lose contact with its support vessle, the Polar Prince, according to the Boston Coast Guard, which is leading the search operation
17: Number of bolts with which the crew closes the hatch from the outside. “There’s no other way out,” CBS’s Pogue had reported
$19.8 million: How much funding OceanGate has raised in two rounds since it was founded in 2009, according to Crunchbase
Person of interest: Hamish Harding
Harding, who posted about the expedition on Instagram, is an avid aviator and explorer.
The British billionaire and owner of Action Aviation was one of the first people to travel the Challenger Deep in the Pacific, the deepest known point on Earth. He also holds the Guinness world record for the fastest circumnavigation of the Earth via the North and South Poles by an aircraft at 46 hours, 40 minutes, and 22 seconds.
After taking part in a human space flight by Jeff Bezos’s Blue Origin, Harding also ranks among a handful of space tourists in the world.
Rabbit hole: Seeing parts of the Titanic outside the ocean
The Titanic, which hit an iceberg and sank during its maiden voyage from Britain to New York in 1912, has stoked curiosity for years, serving as the backdrop for the namesake blockbuster movie and various books. The wreckage was only discovered years later, in 1985.
There are alternatives to diving underwater for those curious about the Titanic’s history and wreck. Dozens of Titanic museums across the UK and the USA display various remnants of the tragedy that claimed over 1,500 lives. These include not only original parts and life-size replicas of the ship, but also recovered personal belongings like baby shoes and a box camera, as well as audio-visual testimonies from some of the 700-odd survivors.
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CRIMINAL CAPITALI$M
Jeffrey Epstein got $300 million tax breaks, paid US Virgin Islands police, JPMorgan says
Jonathan Stempel
Tue, June 20, 2023
Jeffrey Epstein appears in a photo taken for the NY Division of Criminal Justice Services' sex offender registry
By Jonathan Stempel
NEW YORK (Reuters) -JPMorgan Chase said the U.S. Virgin Islands gave Jeffrey Epstein more than $300 million in tax incentives and waived sex offender monitoring requirements, shielding the disgraced late financier as he gave cash and gifts to top officials.
In a Tuesday night court filing, the largest U.S. bank also described how Epstein allegedly paid law enforcement entities such as the Virgin Islands Police Department.
The newly unredacted filing is part of JPMorgan's effort to show that the U.S. Virgin Islands, including former first lady Cecile de Jongh, "actively facilitated" Epstein's sexual abuse of young women and teenage girls.
JPMorgan is defending in Manhattan federal court against the territory's lawsuit filed in December over its relationship with Epstein, a client from 1998 to 2013.
The U.S. Virgin Islands, where Epstein owned two neighboring islands, has accused JPMorgan of facilitating Epstein's crimes by providing banking services, and enabling him to pay victims.
"JPMorgan Chase is the only party to this lawsuit that had real-time knowledge of Jeffrey Epstein's human trafficking operation," Venetia Velazquez, a spokeswoman for the U.S. Virgin Islands attorney general, said in a statement.
"The evidence disclosed so far suggests the bank chose to prioritize its profits over protecting victims."
U.S. Virgin Islands police "never received a single complaint" about Epstein's sex trafficking and would have investigated complaints, a person familiar with the territory's law enforcement practices said. The person lacked authority to discuss those practices publicly.
Neither the police department nor de Jongh immediately responded to requests for comment.
JPMorgan agreed last week to pay $290 million to settle a lawsuit by dozens of Epstein's accusers, pending court approval.
Epstein died by suicide at age 66 in a Manhattan jail cell in August 2019 while awaiting trial on sex trafficking charges.
EPSTEIN'S 'BONA FIDE' RESIDENCY
JPMorgan had described a "quid pro quo" relationship between Epstein and U.S. Virgin Islands officials such as de Jongh, whose husband, John, served as governor from 2007 to 2015.
The bank has said Cecile de Jongh managed Epstein's local companies for eight years and helped arrange visas for some victims, in exchange for Epstein providing a salary, bonuses and tuition for her children's schools.
Tuesday's filing described Epstein's Financial Trust Co, also known as Southern Trust Co, receiving $219.8 million in tax benefits from the U.S. Virgin Islands between 1999 and 2012, and $80.6 million between 2013 and 2018.
In connection with some benefits, the bank said Cecile de Jongh certified in 2009 that Epstein was a "bona fide resident," despite his then serving a 13-month sentence following his 2008 guilty plea to a Florida prostitution charge.
JPMorgan also said the territory waived restrictions on Epstein's ability to travel, despite his sex offender status.
It said the territory's Department of Justice on multiple occasions did not make timely notifications of Epstein's status under the Sex Offender Registration and Notification Act, "something Epstein even personally brought up with USVI DOJ."
The bank also said "Epstein was often not present" when the territory checked up on him at his home.
JPMorgan's latest disclosures followed Monday's release by the U.S. Virgin Islands of a 22-page document prepared by the bank in late 2019 after Epstein's death.
The document described Epstein's ties to former JPMorgan private banking chief Jes Staley, including dozens of personal messages between them, and messages involving other bank officials.
JPMorgan has sued Staley, and wants him liable for damages it might owe in the accusers' and U.S. Virgin Islands' lawsuits.
Staley left JPMorgan in 2013, and later spent six years as Barclays' chief executive.
He has expressed regret for his friendship with Epstein and repeatedly denied knowing about his crimes.
(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler, Gerry Doyle and Deepa Babington)
Jeffrey Epstein got $300 million tax breaks, paid US Virgin Islands police, JPMorgan says
Jonathan Stempel
Tue, June 20, 2023
Jeffrey Epstein appears in a photo taken for the NY Division of Criminal Justice Services' sex offender registry
By Jonathan Stempel
NEW YORK (Reuters) -JPMorgan Chase said the U.S. Virgin Islands gave Jeffrey Epstein more than $300 million in tax incentives and waived sex offender monitoring requirements, shielding the disgraced late financier as he gave cash and gifts to top officials.
In a Tuesday night court filing, the largest U.S. bank also described how Epstein allegedly paid law enforcement entities such as the Virgin Islands Police Department.
The newly unredacted filing is part of JPMorgan's effort to show that the U.S. Virgin Islands, including former first lady Cecile de Jongh, "actively facilitated" Epstein's sexual abuse of young women and teenage girls.
JPMorgan is defending in Manhattan federal court against the territory's lawsuit filed in December over its relationship with Epstein, a client from 1998 to 2013.
The U.S. Virgin Islands, where Epstein owned two neighboring islands, has accused JPMorgan of facilitating Epstein's crimes by providing banking services, and enabling him to pay victims.
"JPMorgan Chase is the only party to this lawsuit that had real-time knowledge of Jeffrey Epstein's human trafficking operation," Venetia Velazquez, a spokeswoman for the U.S. Virgin Islands attorney general, said in a statement.
"The evidence disclosed so far suggests the bank chose to prioritize its profits over protecting victims."
U.S. Virgin Islands police "never received a single complaint" about Epstein's sex trafficking and would have investigated complaints, a person familiar with the territory's law enforcement practices said. The person lacked authority to discuss those practices publicly.
Neither the police department nor de Jongh immediately responded to requests for comment.
JPMorgan agreed last week to pay $290 million to settle a lawsuit by dozens of Epstein's accusers, pending court approval.
Epstein died by suicide at age 66 in a Manhattan jail cell in August 2019 while awaiting trial on sex trafficking charges.
EPSTEIN'S 'BONA FIDE' RESIDENCY
JPMorgan had described a "quid pro quo" relationship between Epstein and U.S. Virgin Islands officials such as de Jongh, whose husband, John, served as governor from 2007 to 2015.
The bank has said Cecile de Jongh managed Epstein's local companies for eight years and helped arrange visas for some victims, in exchange for Epstein providing a salary, bonuses and tuition for her children's schools.
Tuesday's filing described Epstein's Financial Trust Co, also known as Southern Trust Co, receiving $219.8 million in tax benefits from the U.S. Virgin Islands between 1999 and 2012, and $80.6 million between 2013 and 2018.
In connection with some benefits, the bank said Cecile de Jongh certified in 2009 that Epstein was a "bona fide resident," despite his then serving a 13-month sentence following his 2008 guilty plea to a Florida prostitution charge.
JPMorgan also said the territory waived restrictions on Epstein's ability to travel, despite his sex offender status.
It said the territory's Department of Justice on multiple occasions did not make timely notifications of Epstein's status under the Sex Offender Registration and Notification Act, "something Epstein even personally brought up with USVI DOJ."
The bank also said "Epstein was often not present" when the territory checked up on him at his home.
JPMorgan's latest disclosures followed Monday's release by the U.S. Virgin Islands of a 22-page document prepared by the bank in late 2019 after Epstein's death.
The document described Epstein's ties to former JPMorgan private banking chief Jes Staley, including dozens of personal messages between them, and messages involving other bank officials.
JPMorgan has sued Staley, and wants him liable for damages it might owe in the accusers' and U.S. Virgin Islands' lawsuits.
Staley left JPMorgan in 2013, and later spent six years as Barclays' chief executive.
He has expressed regret for his friendship with Epstein and repeatedly denied knowing about his crimes.
(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler, Gerry Doyle and Deepa Babington)
PROMO ARTICLE
Cesium Wars: Why Are China and North America Fighting Over This Rare Metal?
Editor OilPrice.com
Tue, June 20, 2023
The Canadian mining sector is on a mission: To create the world’s most secure supply of critical minerals—without Chinese involvement.
Critical minerals represent one of the most pressing present and future national security issues for the Western world. The Canadian government should be cautious in accepting Chinese investment in its crucial mining sector while creating new opportunities and reducing future risk for investors.
The rarer the mineral is, the more critical to national security. Access to rare metals is essential to gaining technological superiority, which in turn dictates superpower status. It’s the East-West battle of the century, and the critical mineral Cesium (Cs) is a key element at the heart of it all.
Cesium is so critical that its value is in the realm of the priceless.
In 2018, when junior miner Power Metals Corp (TSXV:PWM,OTC: PWRMF) discovered high-grade cesium while exploring for lithium, North America must have breathed a sigh of relief. Cesium is central to the United States’ goal of winning the 5G race. It’s a lofty goal considering that there is no cesium currently being produced anywhere in the world at all.
Chinese investors pounced on the play, until the Canadian federal government stepped in to keep things in Western hands.
The Chinese have now been kicked out, and replaced with large Australian investors, significantly reducing risk related to national security issues and rising tensions between East and West as the end game for the control of crucial elements intensifies
This may put Power Metals and its all-Western investors in control of the only potential cesium mine that China doesn’t own.
This could be highly strategic to hindering China’s potential to weaponize critical minerals.
Case Lake: North America’s Critical Minerals Coup
The oil and gas industry is taking note, too. Cesium formate brines are used as a lubricant for high-pressure, high-temperature well drilling equipment in the North Sea—one of the West’s most important oil and gas venues, even more so in the wake of Russia’s invasion of Ukraine.
Cesium bromide is also used in infrared detectors, optics, photoelectrical cells, scintillation counters, and spectrometers. Critical use goes beyond this, as well, with cesium isotopes necessary for maintaining atomic resonance frequency standards in atomic clocks (think: aircraft guidance systems, global positioning satellites, and internet and cellular telephone transmissions).
5G technology is expected to rule the world because it can create a continuous, real-time connection for every single device that exists and every single device that will be made because of it. The new 5G cellular wireless tech will transfer data and the correct time faster than ever before--fast enough and accurately enough to transform industries. None of it can happen without cesium.
Meanwhile, China is forging ahead with its Huawei-led plans for 5G (and global) domination.
The national security applications are wide, varied and of the highest level of urgency.
This is the Pandora’s Box that Power Metals may have opened for North America, and it’s all happening at its Case Lake property, nestled amongst Canada’s well-established gold-mining camps in the prolific Abitibi Greenstone Belt.
The first discovery came in August 2018, when Power Metals was drilling for lithium at Case Lake’s West Joe Dyke and intersected high-grade cesium mineralization in multiple drill holes.
That year, Power Metals (TSXV:PWM,OTC: PWRMF) drilled 18 holes at West Joe Dyke. Five drill holes intersected “exceptionally high-grade” lithium and tantalum (Li-Ta), and three holes delivered the cesium surprise.
Fast forward to the summer of 2022, and Power Metals drilled another 36 holes, intersecting more high-grade lithium and cesium.
With three critical commodities on offer—lithium, cesium and tantalum—in our opinion, Case Lake is shaping up to be one of the most important mining venues to watch on the planet.
And those three commodities are found in pegmatite that is exposed on the surface, with a shallow depth of less than 50 meters—an arrangement that suits investors who are looking for miners that can reduce costs by not having to drill too deep.
It’s all along a massive, 10-kilometer mineralization trend that could turn up more discoveries as drilling continues.
The Australian Edge
Not only is Case Lake the first potential cesium mine not controlled by China, but it also looks like one of the most advantageous venues to explore and develop.
According to Power Metals, the venue houses high-grade cesium that is similar to Australia’s famous Sinclair Mine.
That could make the forced Chinese exit and their replacement with big Australian money and expertise one of the most propitious developments for investors on the critical mineral playing field.
And the Australian edge isn’t just about vital national security. It’s also about Australia’s cesium development expertise.
Australia's first commercial cesium mine, Sinclair, extracted its last cesium in 2019. And it’s one of only three in the world. The other two are the Tanco mine in Manitoba, Canada, and the Bikita mine in Zimbabwe. Tanco shut down after the mine collapsed in 2015, and Bitika was depleted in 2018.
That makes Power Metals’ Case Lake Property something to covet, globally. It’s also why Canada is adamant that China does not get its hands on what could end up being the only supply of cesium known, or left, in the world. It also has Washington’s full support as the U.S. backs any effort to overturn China’s dominance of critical mineral supply chains.
The smart Australian money we are referring to is Australia’s Winsome Resources (ASX:WR1) which jumped at the opportunity to replace Chinese investors when the Canadian government issued its eviction notice in November last year due to national security concerns. The involved Chinese company was mining giant Sinomine Resource Group a multi-billion market cap Beijing based giant. The new buyer, Winsome, bought their stake as soon as the Canadian government demanded the divesture. Not only did Winsome purchase Sinomine’s 5.7% stake in Power Metals, but they have also since increased their stake to 10.13 % in the past couple of months.
"While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security and our critical minerals supply chains, both at home and abroad," Industry Minister Francois-Philippe Champagne said in a November statement. With the takeover of Sinomine’s shares in Power Metals, Winsome also strategically acquired the Chinese company’s offtake rights for Case Lake’s prospective lithium, cesium and tantalum.
“The Case Lake Project is located in relatively close proximity to a number of our assets, in particular Mazerac and Decelles, with similar geological characteristics and strong drill results showing high-grade caesium, lithium and tantalum mineralization,” Winsome said in a statement. Winsome has soared with success in the past year on the Australian stock market after making a gigantic lithium discovery of their own in nearby Quebec over the past year.
“The minerals are all in high demand within North America and the rights to the offtake agreement are another positive step in the Winsome journey. We look forward to working with Power Metals to assist in developing this impressive project.”
Now, with what looks to be the only prospective cesium mine de-risked in terms of high-level national security, Power Metals (TSXV:PWM,OTC: PWRMF) is left to focus on fast-paced drilling and analysis of discoveries in what could be one of the most important mining venues of our time.
This junior miner is one to watch as it now finds itself at the heart of a battle for global dominance, while the U.S. and its Western allies make their biggest push yet to reduce reliance on China and establish alternative critical minerals supply chains.
Other companies to keep an eye on in the rare earth space:
Sociedad Quimica y Minera de Chile (NYSE:SQM): SQM is a prominent player in the lithium industry, and is poised for favorable growth prospects in the medium term as demand for lithium surges. The company has demonstrated solid profitability and cash flow generation in recent times. In the latest year, SQM achieved approximately $4.9 billion in free cash flow, and even under conservative assumptions, estimating free cash flow at $3 billion for 2023, the stock currently trades at a valuation of 7 times this year's free cash flow. When compared to other sectors in the stock market, where valuations often exceed 10 times free cash flow, SQM's valuation appears attractive, particularly considering the strong tailwinds propelling the lithium industry forward.
What sets SQM apart from many other lithium producers is its diversification. In addition to its lithium operations, the company derives significant earnings from its fertilizer, iodine, and potassium businesses. This diversification helps mitigate its exposure to the cyclical nature of the lithium market, providing a more balanced revenue stream. By having multiple revenue sources, SQM has built resilience into its business model, reducing the dependency on lithium prices alone.
Albemarle Corporation (NYSE: ALB): Few companies have profited as much from the electrification of transport as Albemarle, the world's largest lithium producer. Despite facing challenges from increased raw material costs and demand weakness in specialties, Albemarle is strategically positioned to capitalize on the long-term growth of the battery-grade lithium market.
During the first quarter of 2023, Albemarle witnessed higher volumes, supported by the La Negra III/IV expansion in Chile and an increase in tolling volumes. Furthermore, the company's cost-saving and productivity initiatives are expected to bolster its margins throughout 2023. To meet the growing demand for electric vehicles and lithium-ion batteries, Albemarle recently announced the location of its lithium mega-flex facility in South Carolina. With an initial investment of $1.3 billion or more, the facility aims to produce approximately 50,000 metric tons of battery-grade lithium hydroxide annually, with the potential to increase it to 100,000 metric tons. This capacity can support the production of about 2.4 million electric vehicles per year. The facility aligns with the Inflation Reduction Act and contributes to the localization of crucial minerals in North America. Additionally, the company is actively investing in projects in Western Australia and China to enhance its global lithium conversion capacity.
Tesla (NASDAQ:TSLA): Following a challenging year in 2022, Tesla is now on an upward trajectory. In the first quarter of 2023, the Model Y emerged as the top-selling vehicle globally, contributing to the company's stock price rebound. Tesla's CEO, Elon Musk, recently alluded to exciting developments on the horizon. While he didn't disclose specific new products during the annual shareholder meeting, Musk confirmed that two projects are in the works, generating anticipation among investors and enthusiasts alike. Surprisingly, Musk also announced a shift in Tesla's advertising strategy, expressing openness to exploring paid advertising, a departure from his previous stance against it.
While Tesla is not currently involved in lithium mining, it has made significant strides in securing its lithium supply chain. Tesla recently broke ground on a lithium refinery in Texas, marking a pivotal development for the company. According to Elon Musk, the facility has the potential to provide sufficient lithium for approximately 1 million electric vehicles (EVs) by 2025. With construction expected to be completed next year, Tesla aims to achieve full production capacity within a year thereafter. Specific details regarding the refinery's capacity are yet to be announced, highlighting the company's commitment to securing a sustainable and reliable lithium source for its EV production.
QuantumScape (NYSE: QS): QuantumScape is dedicated to the development of solid-state lithium-metal batteries for electric vehicles (EVs), presenting an intriguing opportunity accompanied by significant risk. The company's innovative battery technology has the potential to revolutionize the EV industry by enabling lighter, safer, and faster-charging batteries with longer life cycles. QuantumScape has achieved noteworthy progress, evidenced by promising testing results for its 24-layer cell prototype, demonstrating high-level fast charging and minimal capacity loss. Notably, the company has secured investments from major players such as Volkswagen and has garnered interest from other automotive companies. If QuantumScape successfully brings its products to market, it could experience explosive sales and earnings growth, leading to substantial returns for investors.
However, the company is still in the pre-revenue stage, relying on prototype technologies, and faces challenges in terms of reliability and commercialization. Its significant operating expenses and the need for substantial capital expenditures underscore the financial uncertainties it confronts. Furthermore, QuantumScape is not the sole player in the potentially revolutionary battery technologies sector, as competitors like CATL, Toyota, Samsung, and others present potential challenges. Scaling up manufacturing could prove costly and encounter unforeseen obstacles. Undoubtedly an exciting company in the space, but not without associated risks.
Lithium Americas Corp (NYSE:LAC, TSX:LAC): As a pre-production lithium miner, Lithium Americas Corp is poised for significant growth with promising projects on the horizon. While still awaiting production and facing the inherent uncertainties of such a stage, LAC presents an intriguing investment opportunity. The recent decline in lithium prices, coupled with the trend toward increased self-sufficiency and support for the US mining industry, makes LAC an attractive option at current levels.
LAC's flagship projects, Cauchari-Olaroz in Argentina and Thacker Pass in Nevada, USA, hold tremendous potential. The Cauchari-Olaroz project, a joint venture with Ganfeng Lithium, is expected to commence lithium carbonate production of 40 ktpa by early 2024. With a 45% interest in the project, LAC stands to benefit significantly from an estimated 18,000 tons of production next year, translating to approximately $520 million in revenues at current market prices. Meanwhile, LAC's Thacker Pass project, set to become the largest lithium mine in the United States, promises substantial production growth beyond 2024, reinforcing the company's long-term prospects.
As the global demand for electric vehicles continues to rise steadily, the anticipated rebound in lithium prices and the potential benefits of the IRA for US miners further strengthen LAC's position.
Patriot Battery Metals (TSXV: PMET) Patriot Battery Metals, an exploration and development company, has been making significant strides in advancing its Corvette lithium property located in Quebec's James Bay region. The company's commitment to exploration is evident through its ongoing winter 2023 drill program, which aims to extend the CV5 lithium pegmatite at the Corvette site.
With an impressive year-to-date gain of nearly 200%, Patriot's success can be attributed to its remarkable achievements, including reporting the highest-grade lithium intercept at the CV5 pegmatite and extending the pegmatite by at least 3.7 kilometers. The positive news, combined with strategic appointments, equity incentive plans, and successful drill campaigns, has generated upward momentum for Patriot's share price. Supported by a recent C$50 million flow-through raising, the company is well-positioned to continue its growth trajectory, with plans to release an initial resource estimate for CV5 in the near future.
Sigma Lithium (TSX.V:SGML) Sigma Lithium has made significant progress in the global lithium market with the commencement of lithium spodumene production at its Grota do Cirilo mine in Minas Gerais, Brazil, in April 2023. The company aims to become one of the world's largest lithium producers, with plans to scale up production to approximately 104 kilotons per annum (ktpa) of lithium carbonate equivalent (LCE) by 2025. This strategic move not only positions Sigma Lithium as a key player in the industry but also gives it a higher lithium production to market cap ratio than many of its competitors. The company's commitment to sustainability is evident in its greentech dense media separation production plant, which enables vertical integration and boasts environmentally friendly features such as 100% dry-stacked tailings, clean energy, recycled water, and zero hazardous chemicals.
Sigma Lithium's progress has been marked by important milestones, including the receipt of an environmental operating license for Grota do Cirilo from COPAM, the Minas Gerais state environmental regulator. This license grants Sigma Lithium the authority to sell all of its lithium from current and future operations. The company achieved first production at 75% of nameplate throughput capacity in April and prepared its first shipment of green lithium to take place. With a planned shipment of 15,000 MT, Sigma Lithium has commenced the process of transporting its lithium to port, with full production expected to be reached by July 2023.
Allkem (TSX:AKE): The recent merger between Allkem and Livent has caused significant disruption in the lithium industry, creating the world's third-largest vertically-integrated lithium producer and reshaping the industry landscape. The combined entity brings together a highly diversified asset portfolio, generating economies of scale and operational synergies. With an estimated EBITDA of approximately $1.5 billion and potential cost efficiencies of $125 million per year, the newly formed company is poised for significant growth.
Already a strong company, the merger mitigates execution risks by combining the expertise of Galaxy Resources in hard-rock lithium mining with Livent's experience in brine lithium extraction. While short-term risks such as lithium price volatility and foreign currency fluctuations persist, the merger positions the company favorably to capitalize on opportunities in the lithium market. As the lithium industry consolidates and battery manufacturers and automakers seek resilient supply chains, the merger between Allkem and Livent is likely a sign of things to come in the industry.
Standard Lithium (SLI TSX.V): Vancouver-based Standard Lithium is a near-commercial development company focused on lithium extraction, utilizing its proprietary technology. The company is actively advancing its Lanxess Project and South West Arkansas (SWA) Project, both located in Arkansas near the Louisiana border. Additionally, Standard Lithium holds well and drilling rights in the Smackover Foundation in East Texas.
The company is currently in the final stages of completing a Definitive Feasibility Study (DFS) and a Front-End Engineering Design (FEED) study for its Lanxess Project, with expected completion by the end of the second quarter. The company has the option to seek a partner for up to 49 percent of the project if LANXESS AG chooses not to acquire the equity stake. Furthermore, the ongoing Pre-Feasibility Study (PFS) for the SWA Project is also on track for completion by the end of the current quarter, showing impressive lithium grades from recent brine samples and anticipated low operating costs.
By. Tom Kool
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Forward-Looking Statements
This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that the Canadian mining sector will continue to protect its supply of critical minerals without involvement of China; that cesium and other metals will remain as critical minerals will continue as a national security issue for Western countries; that access to rare metals, and in particular cesium, will be essential to gaining technical superiority; that cesium and other rare earth metals will continue to be a critical for use in various technologies, including the 5G cellular and wireless technologies; that cesium will continue to be a critical mineral and considered as matter of national security for Western countries; that Power Metals Corp. (the “Company”) and its all-Western investors will be in control of the only cesium mine that China does not own; that the Company’s properties will be able to commercially produce cesium, lithium, tantalum and other critical minerals; that the Company will be able to finance and operationally establish mines on its properties to viably and commercially extract the critical minerals; that Australian shareholders and investors in the Company will provide development and other expertise to assist the Company; that Winsome Resources will continue to own a significant stake in the Company; that the Company’s property will one day have one of the only potential mines producing cesium; that the Company can finance ongoing operations and development; that the Company can achieve its business plans and objectives as anticipated. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include the development of alternative technologies that do not require the use of metals and resources currently considered as critical; that other resources are utilized in future in favour of rare earth metals such as cesium; that alternative technologies utilize other resources or that cesium, lithium, and tantalum are not utilized; that other companies discover resources of cesium and other battery metals that are more favorable or more easily developed into commercial production that the Company’s property; that the Company’s properties are unable to produce commercial amounts of cesium, lithium, tantalum or other critical metals; that the Company will be unable to finance or operationally establish mines on its properties for commercial extraction of any critical minerals; that the Company’s Australian investors will not be able to provide development and other expertise to meaningful assist the Company; that Winsome Resources may for various reasons divest its stake in the Company in future; that the Company’s properties may fail to develop mines producing cesium; that the Company may be unable to finance its ongoing operations and development; that the business of the Company may be unsuccessful for various reasons. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
DISCLAIMERS
This communication is for entertainment purposes only. Never invest purely based on our communication. We have not been compensated by Power Metals Corp. but may in the future be compensated to conduct investor awareness advertising and marketing for Power Metals Corp. The information in our communications and on our website has not been independently verified and is not guaranteed to be correct. The content of this article is based solely on our opinions which are based on very limited analysis.
SHARE OWNERSHIP. The owner of Oilprice.com owns shares of Power Metals Corp. and therefore has an additional incentive to see the featured company’s stock perform well. The owner of Oilprice.com will not notify the market when it decides to buy more or sell shares of this issuer in the market. The owner of Oilprice.com will be buying and selling shares of this issuer for its own profit. This is why we are biased in our views and opinions in this article and why we stress that you should conduct your own extensive due diligence regarding the Company as well as seek the advice of your professional financial advisor or a registered broker-dealer before you consider investing in any securities.
NOT AN INVESTMENT ADVISOR. Oilprice.com is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation.
ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment in any securities.
RISK OF INVESTING. Investing is inherently risky. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities. No representation is being made that any stock acquisition will or is likely to achieve profits.
Editor OilPrice.com
Tue, June 20, 2023
The Canadian mining sector is on a mission: To create the world’s most secure supply of critical minerals—without Chinese involvement.
Critical minerals represent one of the most pressing present and future national security issues for the Western world. The Canadian government should be cautious in accepting Chinese investment in its crucial mining sector while creating new opportunities and reducing future risk for investors.
The rarer the mineral is, the more critical to national security. Access to rare metals is essential to gaining technological superiority, which in turn dictates superpower status. It’s the East-West battle of the century, and the critical mineral Cesium (Cs) is a key element at the heart of it all.
Cesium is so critical that its value is in the realm of the priceless.
In 2018, when junior miner Power Metals Corp (TSXV:PWM,OTC: PWRMF) discovered high-grade cesium while exploring for lithium, North America must have breathed a sigh of relief. Cesium is central to the United States’ goal of winning the 5G race. It’s a lofty goal considering that there is no cesium currently being produced anywhere in the world at all.
Chinese investors pounced on the play, until the Canadian federal government stepped in to keep things in Western hands.
The Chinese have now been kicked out, and replaced with large Australian investors, significantly reducing risk related to national security issues and rising tensions between East and West as the end game for the control of crucial elements intensifies
This may put Power Metals and its all-Western investors in control of the only potential cesium mine that China doesn’t own.
This could be highly strategic to hindering China’s potential to weaponize critical minerals.
Case Lake: North America’s Critical Minerals Coup
The oil and gas industry is taking note, too. Cesium formate brines are used as a lubricant for high-pressure, high-temperature well drilling equipment in the North Sea—one of the West’s most important oil and gas venues, even more so in the wake of Russia’s invasion of Ukraine.
Cesium bromide is also used in infrared detectors, optics, photoelectrical cells, scintillation counters, and spectrometers. Critical use goes beyond this, as well, with cesium isotopes necessary for maintaining atomic resonance frequency standards in atomic clocks (think: aircraft guidance systems, global positioning satellites, and internet and cellular telephone transmissions).
5G technology is expected to rule the world because it can create a continuous, real-time connection for every single device that exists and every single device that will be made because of it. The new 5G cellular wireless tech will transfer data and the correct time faster than ever before--fast enough and accurately enough to transform industries. None of it can happen without cesium.
Meanwhile, China is forging ahead with its Huawei-led plans for 5G (and global) domination.
The national security applications are wide, varied and of the highest level of urgency.
This is the Pandora’s Box that Power Metals may have opened for North America, and it’s all happening at its Case Lake property, nestled amongst Canada’s well-established gold-mining camps in the prolific Abitibi Greenstone Belt.
The first discovery came in August 2018, when Power Metals was drilling for lithium at Case Lake’s West Joe Dyke and intersected high-grade cesium mineralization in multiple drill holes.
That year, Power Metals (TSXV:PWM,OTC: PWRMF) drilled 18 holes at West Joe Dyke. Five drill holes intersected “exceptionally high-grade” lithium and tantalum (Li-Ta), and three holes delivered the cesium surprise.
Fast forward to the summer of 2022, and Power Metals drilled another 36 holes, intersecting more high-grade lithium and cesium.
With three critical commodities on offer—lithium, cesium and tantalum—in our opinion, Case Lake is shaping up to be one of the most important mining venues to watch on the planet.
And those three commodities are found in pegmatite that is exposed on the surface, with a shallow depth of less than 50 meters—an arrangement that suits investors who are looking for miners that can reduce costs by not having to drill too deep.
It’s all along a massive, 10-kilometer mineralization trend that could turn up more discoveries as drilling continues.
The Australian Edge
Not only is Case Lake the first potential cesium mine not controlled by China, but it also looks like one of the most advantageous venues to explore and develop.
According to Power Metals, the venue houses high-grade cesium that is similar to Australia’s famous Sinclair Mine.
That could make the forced Chinese exit and their replacement with big Australian money and expertise one of the most propitious developments for investors on the critical mineral playing field.
And the Australian edge isn’t just about vital national security. It’s also about Australia’s cesium development expertise.
Australia's first commercial cesium mine, Sinclair, extracted its last cesium in 2019. And it’s one of only three in the world. The other two are the Tanco mine in Manitoba, Canada, and the Bikita mine in Zimbabwe. Tanco shut down after the mine collapsed in 2015, and Bitika was depleted in 2018.
That makes Power Metals’ Case Lake Property something to covet, globally. It’s also why Canada is adamant that China does not get its hands on what could end up being the only supply of cesium known, or left, in the world. It also has Washington’s full support as the U.S. backs any effort to overturn China’s dominance of critical mineral supply chains.
The smart Australian money we are referring to is Australia’s Winsome Resources (ASX:WR1) which jumped at the opportunity to replace Chinese investors when the Canadian government issued its eviction notice in November last year due to national security concerns. The involved Chinese company was mining giant Sinomine Resource Group a multi-billion market cap Beijing based giant. The new buyer, Winsome, bought their stake as soon as the Canadian government demanded the divesture. Not only did Winsome purchase Sinomine’s 5.7% stake in Power Metals, but they have also since increased their stake to 10.13 % in the past couple of months.
"While Canada continues to welcome foreign direct investment, we will act decisively when investments threaten our national security and our critical minerals supply chains, both at home and abroad," Industry Minister Francois-Philippe Champagne said in a November statement. With the takeover of Sinomine’s shares in Power Metals, Winsome also strategically acquired the Chinese company’s offtake rights for Case Lake’s prospective lithium, cesium and tantalum.
“The Case Lake Project is located in relatively close proximity to a number of our assets, in particular Mazerac and Decelles, with similar geological characteristics and strong drill results showing high-grade caesium, lithium and tantalum mineralization,” Winsome said in a statement. Winsome has soared with success in the past year on the Australian stock market after making a gigantic lithium discovery of their own in nearby Quebec over the past year.
“The minerals are all in high demand within North America and the rights to the offtake agreement are another positive step in the Winsome journey. We look forward to working with Power Metals to assist in developing this impressive project.”
Now, with what looks to be the only prospective cesium mine de-risked in terms of high-level national security, Power Metals (TSXV:PWM,OTC: PWRMF) is left to focus on fast-paced drilling and analysis of discoveries in what could be one of the most important mining venues of our time.
This junior miner is one to watch as it now finds itself at the heart of a battle for global dominance, while the U.S. and its Western allies make their biggest push yet to reduce reliance on China and establish alternative critical minerals supply chains.
Other companies to keep an eye on in the rare earth space:
Sociedad Quimica y Minera de Chile (NYSE:SQM): SQM is a prominent player in the lithium industry, and is poised for favorable growth prospects in the medium term as demand for lithium surges. The company has demonstrated solid profitability and cash flow generation in recent times. In the latest year, SQM achieved approximately $4.9 billion in free cash flow, and even under conservative assumptions, estimating free cash flow at $3 billion for 2023, the stock currently trades at a valuation of 7 times this year's free cash flow. When compared to other sectors in the stock market, where valuations often exceed 10 times free cash flow, SQM's valuation appears attractive, particularly considering the strong tailwinds propelling the lithium industry forward.
What sets SQM apart from many other lithium producers is its diversification. In addition to its lithium operations, the company derives significant earnings from its fertilizer, iodine, and potassium businesses. This diversification helps mitigate its exposure to the cyclical nature of the lithium market, providing a more balanced revenue stream. By having multiple revenue sources, SQM has built resilience into its business model, reducing the dependency on lithium prices alone.
Albemarle Corporation (NYSE: ALB): Few companies have profited as much from the electrification of transport as Albemarle, the world's largest lithium producer. Despite facing challenges from increased raw material costs and demand weakness in specialties, Albemarle is strategically positioned to capitalize on the long-term growth of the battery-grade lithium market.
During the first quarter of 2023, Albemarle witnessed higher volumes, supported by the La Negra III/IV expansion in Chile and an increase in tolling volumes. Furthermore, the company's cost-saving and productivity initiatives are expected to bolster its margins throughout 2023. To meet the growing demand for electric vehicles and lithium-ion batteries, Albemarle recently announced the location of its lithium mega-flex facility in South Carolina. With an initial investment of $1.3 billion or more, the facility aims to produce approximately 50,000 metric tons of battery-grade lithium hydroxide annually, with the potential to increase it to 100,000 metric tons. This capacity can support the production of about 2.4 million electric vehicles per year. The facility aligns with the Inflation Reduction Act and contributes to the localization of crucial minerals in North America. Additionally, the company is actively investing in projects in Western Australia and China to enhance its global lithium conversion capacity.
Tesla (NASDAQ:TSLA): Following a challenging year in 2022, Tesla is now on an upward trajectory. In the first quarter of 2023, the Model Y emerged as the top-selling vehicle globally, contributing to the company's stock price rebound. Tesla's CEO, Elon Musk, recently alluded to exciting developments on the horizon. While he didn't disclose specific new products during the annual shareholder meeting, Musk confirmed that two projects are in the works, generating anticipation among investors and enthusiasts alike. Surprisingly, Musk also announced a shift in Tesla's advertising strategy, expressing openness to exploring paid advertising, a departure from his previous stance against it.
While Tesla is not currently involved in lithium mining, it has made significant strides in securing its lithium supply chain. Tesla recently broke ground on a lithium refinery in Texas, marking a pivotal development for the company. According to Elon Musk, the facility has the potential to provide sufficient lithium for approximately 1 million electric vehicles (EVs) by 2025. With construction expected to be completed next year, Tesla aims to achieve full production capacity within a year thereafter. Specific details regarding the refinery's capacity are yet to be announced, highlighting the company's commitment to securing a sustainable and reliable lithium source for its EV production.
QuantumScape (NYSE: QS): QuantumScape is dedicated to the development of solid-state lithium-metal batteries for electric vehicles (EVs), presenting an intriguing opportunity accompanied by significant risk. The company's innovative battery technology has the potential to revolutionize the EV industry by enabling lighter, safer, and faster-charging batteries with longer life cycles. QuantumScape has achieved noteworthy progress, evidenced by promising testing results for its 24-layer cell prototype, demonstrating high-level fast charging and minimal capacity loss. Notably, the company has secured investments from major players such as Volkswagen and has garnered interest from other automotive companies. If QuantumScape successfully brings its products to market, it could experience explosive sales and earnings growth, leading to substantial returns for investors.
However, the company is still in the pre-revenue stage, relying on prototype technologies, and faces challenges in terms of reliability and commercialization. Its significant operating expenses and the need for substantial capital expenditures underscore the financial uncertainties it confronts. Furthermore, QuantumScape is not the sole player in the potentially revolutionary battery technologies sector, as competitors like CATL, Toyota, Samsung, and others present potential challenges. Scaling up manufacturing could prove costly and encounter unforeseen obstacles. Undoubtedly an exciting company in the space, but not without associated risks.
Lithium Americas Corp (NYSE:LAC, TSX:LAC): As a pre-production lithium miner, Lithium Americas Corp is poised for significant growth with promising projects on the horizon. While still awaiting production and facing the inherent uncertainties of such a stage, LAC presents an intriguing investment opportunity. The recent decline in lithium prices, coupled with the trend toward increased self-sufficiency and support for the US mining industry, makes LAC an attractive option at current levels.
LAC's flagship projects, Cauchari-Olaroz in Argentina and Thacker Pass in Nevada, USA, hold tremendous potential. The Cauchari-Olaroz project, a joint venture with Ganfeng Lithium, is expected to commence lithium carbonate production of 40 ktpa by early 2024. With a 45% interest in the project, LAC stands to benefit significantly from an estimated 18,000 tons of production next year, translating to approximately $520 million in revenues at current market prices. Meanwhile, LAC's Thacker Pass project, set to become the largest lithium mine in the United States, promises substantial production growth beyond 2024, reinforcing the company's long-term prospects.
As the global demand for electric vehicles continues to rise steadily, the anticipated rebound in lithium prices and the potential benefits of the IRA for US miners further strengthen LAC's position.
Patriot Battery Metals (TSXV: PMET) Patriot Battery Metals, an exploration and development company, has been making significant strides in advancing its Corvette lithium property located in Quebec's James Bay region. The company's commitment to exploration is evident through its ongoing winter 2023 drill program, which aims to extend the CV5 lithium pegmatite at the Corvette site.
With an impressive year-to-date gain of nearly 200%, Patriot's success can be attributed to its remarkable achievements, including reporting the highest-grade lithium intercept at the CV5 pegmatite and extending the pegmatite by at least 3.7 kilometers. The positive news, combined with strategic appointments, equity incentive plans, and successful drill campaigns, has generated upward momentum for Patriot's share price. Supported by a recent C$50 million flow-through raising, the company is well-positioned to continue its growth trajectory, with plans to release an initial resource estimate for CV5 in the near future.
Sigma Lithium (TSX.V:SGML) Sigma Lithium has made significant progress in the global lithium market with the commencement of lithium spodumene production at its Grota do Cirilo mine in Minas Gerais, Brazil, in April 2023. The company aims to become one of the world's largest lithium producers, with plans to scale up production to approximately 104 kilotons per annum (ktpa) of lithium carbonate equivalent (LCE) by 2025. This strategic move not only positions Sigma Lithium as a key player in the industry but also gives it a higher lithium production to market cap ratio than many of its competitors. The company's commitment to sustainability is evident in its greentech dense media separation production plant, which enables vertical integration and boasts environmentally friendly features such as 100% dry-stacked tailings, clean energy, recycled water, and zero hazardous chemicals.
Sigma Lithium's progress has been marked by important milestones, including the receipt of an environmental operating license for Grota do Cirilo from COPAM, the Minas Gerais state environmental regulator. This license grants Sigma Lithium the authority to sell all of its lithium from current and future operations. The company achieved first production at 75% of nameplate throughput capacity in April and prepared its first shipment of green lithium to take place. With a planned shipment of 15,000 MT, Sigma Lithium has commenced the process of transporting its lithium to port, with full production expected to be reached by July 2023.
Allkem (TSX:AKE): The recent merger between Allkem and Livent has caused significant disruption in the lithium industry, creating the world's third-largest vertically-integrated lithium producer and reshaping the industry landscape. The combined entity brings together a highly diversified asset portfolio, generating economies of scale and operational synergies. With an estimated EBITDA of approximately $1.5 billion and potential cost efficiencies of $125 million per year, the newly formed company is poised for significant growth.
Already a strong company, the merger mitigates execution risks by combining the expertise of Galaxy Resources in hard-rock lithium mining with Livent's experience in brine lithium extraction. While short-term risks such as lithium price volatility and foreign currency fluctuations persist, the merger positions the company favorably to capitalize on opportunities in the lithium market. As the lithium industry consolidates and battery manufacturers and automakers seek resilient supply chains, the merger between Allkem and Livent is likely a sign of things to come in the industry.
Standard Lithium (SLI TSX.V): Vancouver-based Standard Lithium is a near-commercial development company focused on lithium extraction, utilizing its proprietary technology. The company is actively advancing its Lanxess Project and South West Arkansas (SWA) Project, both located in Arkansas near the Louisiana border. Additionally, Standard Lithium holds well and drilling rights in the Smackover Foundation in East Texas.
The company is currently in the final stages of completing a Definitive Feasibility Study (DFS) and a Front-End Engineering Design (FEED) study for its Lanxess Project, with expected completion by the end of the second quarter. The company has the option to seek a partner for up to 49 percent of the project if LANXESS AG chooses not to acquire the equity stake. Furthermore, the ongoing Pre-Feasibility Study (PFS) for the SWA Project is also on track for completion by the end of the current quarter, showing impressive lithium grades from recent brine samples and anticipated low operating costs.
By. Tom Kool
**IMPORTANT! BY READING OUR CONTENT YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
Forward-Looking Statements
This publication contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this publication include that the Canadian mining sector will continue to protect its supply of critical minerals without involvement of China; that cesium and other metals will remain as critical minerals will continue as a national security issue for Western countries; that access to rare metals, and in particular cesium, will be essential to gaining technical superiority; that cesium and other rare earth metals will continue to be a critical for use in various technologies, including the 5G cellular and wireless technologies; that cesium will continue to be a critical mineral and considered as matter of national security for Western countries; that Power Metals Corp. (the “Company”) and its all-Western investors will be in control of the only cesium mine that China does not own; that the Company’s properties will be able to commercially produce cesium, lithium, tantalum and other critical minerals; that the Company will be able to finance and operationally establish mines on its properties to viably and commercially extract the critical minerals; that Australian shareholders and investors in the Company will provide development and other expertise to assist the Company; that Winsome Resources will continue to own a significant stake in the Company; that the Company’s property will one day have one of the only potential mines producing cesium; that the Company can finance ongoing operations and development; that the Company can achieve its business plans and objectives as anticipated. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include the development of alternative technologies that do not require the use of metals and resources currently considered as critical; that other resources are utilized in future in favour of rare earth metals such as cesium; that alternative technologies utilize other resources or that cesium, lithium, and tantalum are not utilized; that other companies discover resources of cesium and other battery metals that are more favorable or more easily developed into commercial production that the Company’s property; that the Company’s properties are unable to produce commercial amounts of cesium, lithium, tantalum or other critical metals; that the Company will be unable to finance or operationally establish mines on its properties for commercial extraction of any critical minerals; that the Company’s Australian investors will not be able to provide development and other expertise to meaningful assist the Company; that Winsome Resources may for various reasons divest its stake in the Company in future; that the Company’s properties may fail to develop mines producing cesium; that the Company may be unable to finance its ongoing operations and development; that the business of the Company may be unsuccessful for various reasons. The forward-looking information contained herein is given as of the date hereof and we assume no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
DISCLAIMERS
This communication is for entertainment purposes only. Never invest purely based on our communication. We have not been compensated by Power Metals Corp. but may in the future be compensated to conduct investor awareness advertising and marketing for Power Metals Corp. The information in our communications and on our website has not been independently verified and is not guaranteed to be correct. The content of this article is based solely on our opinions which are based on very limited analysis.
SHARE OWNERSHIP. The owner of Oilprice.com owns shares of Power Metals Corp. and therefore has an additional incentive to see the featured company’s stock perform well. The owner of Oilprice.com will not notify the market when it decides to buy more or sell shares of this issuer in the market. The owner of Oilprice.com will be buying and selling shares of this issuer for its own profit. This is why we are biased in our views and opinions in this article and why we stress that you should conduct your own extensive due diligence regarding the Company as well as seek the advice of your professional financial advisor or a registered broker-dealer before you consider investing in any securities.
NOT AN INVESTMENT ADVISOR. Oilprice.com is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation.
ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment in any securities.
RISK OF INVESTING. Investing is inherently risky. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities. No representation is being made that any stock acquisition will or is likely to achieve profits.
CRIMINAL CAPITALI$M
U.S. securities regulator hits top SPAC auditor with $10 million fineChris Prentice
Wed, June 21, 2023
The headquarters of the U.S. Securities and Exchange Commission (SEC) is seen in Washington, D.C.
By Chris Prentice
NEW YORK (Reuters) - The U.S. Securities and Exchange Commission (SEC) on Wednesday slapped Marcum LLP with a $10 million penalty for standards violations and systemic quality control failures in its audit work for hundreds of special purpose acquisition companies, or SPACs.
Marcum, one of the leading auditors of SPACs, had substantial and widespread deficiencies in its quality control policies and procedures when the firm saw a nearly six-fold increase in clients, the SEC said in a statement. Violations were found in 25-50% of audits reviewed, depending on the audit standard at issue, the SEC said.
A spokesperson for Marcum, which did not admit or deny the SEC's allegations, said in a statement: "We remain committed to maintaining the full confidence of our clients, regulators, and investors."
The SPAC boom of 2020 and 2021 brought the likes of DraftKings Inc and electric truck maker Nikola public, but drew scrutiny from watchdogs and the regulator for concerns over what some saw as less stringent due diligence practices.
"Marcum neglected its essential gatekeeper function in service to its own growth," said SEC Chair Gary Gensler in a statement.
The SEC found the deficiencies were not limited to Marcum's SPAC clients.
In addition to the civil penalty, settlement requires Marcum undertake remedial actions including hiring an independent consultant to review its policies procedures and to abide by certain restrictions when taking on new clients.
(Reporting by Chris Prentice; Editing by Conor Humphries)
World’s Top Dairy Maker Plans Chicago Expansion After $3.2 Billion Kraft Deal
Tarso Veloso and Isis Almeida
Tue, June 20, 2023
Watchlist
Recent Research | 11d
Analyst Report: Kraft Heinz Co
(Bloomberg) -- The world’s largest dairy maker, France’s Groupe Lactalis, is expanding in Chicago after a $3.2 billion deal to acquire cheese brands from Kraft Heinz Co.
The family-owned company plans to hire almost 100 people at its offices in the Windy City over the next year, according to Peter Cotter, chief executive officer of Lactalis Heritage Dairy — the business that runs the natural cheese brands bought from Kraft.
The expansion comes as Lactalis prepares to separate its supply chain and finance systems as part of the integration of Kraft brands including Cracker Barrel and Knudsen. The little known, secretive French dairy giant has in recent years been growing its business in the US, which is now its second-largest market.
“The US is obviously a much bigger country from a land-based standpoint than France is,” Cotter said during an interview at the firm’s office in Chicago’s West Loop neighborhood. “The absolute growth opportunity that exists I think makes it the perfect growth market.”
Lactalis agreed to buy Kraft’s natural cheese business in 2020 and has since then completed the first phase of separation, which included sales, marketing, human resources, the commercial area and manufacturing, Cotter said. A transition agreement for the supply chain and finance systems will end in March, he said.
Lactalis, founded in 1933 and known for its President cheese, is now hiring to build out those areas and expects to have about 220 employees in its Chicago offices by the end of the year, bringing the division’s total workforce to 850. Lactalis Heritage Dairy represents 39% of the group’s total US business.
Lactalis says hiring is still challenging in engineering, manufacturing and other technical areas, but the company is confident it can continue bring in employees from firms that have decided to leave the city. Cotter also touted the company’s locations in a trendy neighborhood close to multiple commuter rail lines as enticements to lure talent.
Corporate Departures
“We’ve had a number of folks that we’ve taken on from from other businesses in the area that have either downsized or shifted their location,” Cotter said, without naming the companies.
Caterpillar Inc., Boeing Co., and Tyson Foods Inc. are among firms that have departed or scaled back in the Chicago area, as well as billionaire Ken Griffin’s Citadel hedge fund.
A tight labor market is one of the reasons inflation remains sticky, Cotter said. Fuel costs have declined but are still not in line with historical levels, and dairy farmers are still being squeezed by high feed costs, fueling concerns that some will cull herds or pull out of the market altogether, reducing supplies down the road.
“You will see softening from an inflation standpoint, and we’ll be able to pass some of that value along to consumers, but some of it has to stick because the cost equation is not going to go all the way back to the original,” Cotter said.
Tarso Veloso and Isis Almeida
Tue, June 20, 2023
Watchlist
Recent Research | 11d
Analyst Report: Kraft Heinz Co
(Bloomberg) -- The world’s largest dairy maker, France’s Groupe Lactalis, is expanding in Chicago after a $3.2 billion deal to acquire cheese brands from Kraft Heinz Co.
The family-owned company plans to hire almost 100 people at its offices in the Windy City over the next year, according to Peter Cotter, chief executive officer of Lactalis Heritage Dairy — the business that runs the natural cheese brands bought from Kraft.
The expansion comes as Lactalis prepares to separate its supply chain and finance systems as part of the integration of Kraft brands including Cracker Barrel and Knudsen. The little known, secretive French dairy giant has in recent years been growing its business in the US, which is now its second-largest market.
“The US is obviously a much bigger country from a land-based standpoint than France is,” Cotter said during an interview at the firm’s office in Chicago’s West Loop neighborhood. “The absolute growth opportunity that exists I think makes it the perfect growth market.”
Lactalis agreed to buy Kraft’s natural cheese business in 2020 and has since then completed the first phase of separation, which included sales, marketing, human resources, the commercial area and manufacturing, Cotter said. A transition agreement for the supply chain and finance systems will end in March, he said.
Lactalis, founded in 1933 and known for its President cheese, is now hiring to build out those areas and expects to have about 220 employees in its Chicago offices by the end of the year, bringing the division’s total workforce to 850. Lactalis Heritage Dairy represents 39% of the group’s total US business.
Lactalis says hiring is still challenging in engineering, manufacturing and other technical areas, but the company is confident it can continue bring in employees from firms that have decided to leave the city. Cotter also touted the company’s locations in a trendy neighborhood close to multiple commuter rail lines as enticements to lure talent.
Corporate Departures
“We’ve had a number of folks that we’ve taken on from from other businesses in the area that have either downsized or shifted their location,” Cotter said, without naming the companies.
Caterpillar Inc., Boeing Co., and Tyson Foods Inc. are among firms that have departed or scaled back in the Chicago area, as well as billionaire Ken Griffin’s Citadel hedge fund.
A tight labor market is one of the reasons inflation remains sticky, Cotter said. Fuel costs have declined but are still not in line with historical levels, and dairy farmers are still being squeezed by high feed costs, fueling concerns that some will cull herds or pull out of the market altogether, reducing supplies down the road.
“You will see softening from an inflation standpoint, and we’ll be able to pass some of that value along to consumers, but some of it has to stick because the cost equation is not going to go all the way back to the original,” Cotter said.
Bloomberg Businessweek
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